Correlation Between JB Hunt and Ecclesiastical Insurance

Can any of the company-specific risk be diversified away by investing in both JB Hunt and Ecclesiastical Insurance at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JB Hunt and Ecclesiastical Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JB Hunt Transport and Ecclesiastical Insurance Office, you can compare the effects of market volatilities on JB Hunt and Ecclesiastical Insurance and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in JB Hunt with a short position of Ecclesiastical Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Hunt and Ecclesiastical Insurance.

Diversification Opportunities for JB Hunt and Ecclesiastical Insurance

-0.87

Correlation Coefficient

JB Hunt  Ecclesiastical Insurance

Pay attention - limited upside

The 3 months correlation between 0J71 and Ecclesiastical is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding JB Hunt Transport and Ecclesiastical Insurance Offic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecclesiastical Insurance and JB Hunt is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on JB Hunt Transport are associated (or correlated) with Ecclesiastical Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecclesiastical Insurance has no effect on the direction of JB Hunt i.e., JB Hunt and Ecclesiastical Insurance go up and down completely randomly.

Pair Corralation between JB Hunt and Ecclesiastical Insurance

Assuming the 90 days trading horizon JB Hunt Transport is expected to under-perform the Ecclesiastical Insurance. In addition to that, JB Hunt is 1.56 times more volatile than Ecclesiastical Insurance Office. It trades about -0.11 of its total potential returns per unit of risk. Ecclesiastical Insurance Office is currently generating about 0.09 per unit of volatility. If you would invest  13,200  in Ecclesiastical Insurance Office on December 25, 2024 and sell it today you would earn a total of  800.00  from holding Ecclesiastical Insurance Office or generate 6.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

JB Hunt Transport  vs.  Ecclesiastical Insurance Offic

JB Hunt Transport

Risk-Adjusted Performance

Very Weak

Over the last 90 days JB Hunt Transport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Ecclesiastical Insurance

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ecclesiastical Insurance Office are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Ecclesiastical Insurance may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with JB Hunt and Ecclesiastical Insurance

The main advantage of trading using opposite JB Hunt and Ecclesiastical Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Hunt position performs unexpectedly, Ecclesiastical Insurance can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ecclesiastical Insurance will offset losses from the drop in Ecclesiastical Insurance's long position.

The idea behind JB Hunt Transport and Ecclesiastical Insurance Office pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.